School Board sets maximum millage rate

Published: Tuesday, July 30, 2013 at 9:22 p.m.

Last Modified: Tuesday, July 30, 2013 at 9:22 p.m.

The Marion County School Board approved the school district’s maximum millage rate for 2013-14 on Tuesday, paving the way for two budget workshops in August.

The overall millage was set at 7.339 mills, which means a homeowner will pay $733.90 for every $100,000 of taxable property value. That’s $33.20 less than in 2012-13.

The significance of Tuesday night’s brief public hearing was that the board set the maximum millage rate. The district can only lower the rate by up to a quarter-mill, which will likely not happen because the district would lose $4 million in state funds if it does.

The state sets the overall millage rates for the state’s 67 school districts, which have little flexibility to adjust them.

The next step for the School Board is to hold budget workshops on Aug. 8 and Aug. 22. If needed, a third budget workshop has been scheduled for Sept. 5.

At those workshops, board members will pore over the budget and decide whether to recommend any more changes before a final vote at the regular Sept. 10 board meeting.

Superintendent of Schools George Tomyn said after the meeting that the budget will continue to fluctuate. In fact, two of Marion County’s elementary schools — Evergreen and Sunrise — were among about 105 schools in the state that will be required to offer an extra hour of reading each school day in 2013-14.

Tomyn just received word about the state mandate that came because of both of the school’s low reading scores. Tomyn said the early cost estimate will be at least $500,000 to add the extra instruction at the two schools.

“We just received word and we have not even sat down to start creating a plan,” said Tomyn, adding that the financial team will have to begin figuring out how to pay for those programs.

Tomyn presented his 2013-14 budget to the board last week, a budget 1.5 percent leaner than last year despite the rising cost of health insurance and utility rates. The district’s $456.8 million overall budget is $6.9 million less than in 2012-13.

The district budgeted $312.6 million for its general revenue fund — $7 million more than in 2012-13 and $2.9 million more than school officials had estimated in May.

Though it may seem like good news that the district has $7 million more in operations than 2012-13, that’s not the case. Last year, the district used $10 million in reserve funds to balance the budget. Because the district had depleted its reserves above the state-mandated requirement, the district has to make up the $10 million in 2013-14.

Tomyn spoke to the board on Tuesday, explaining that he plans to use about $3 million in reserves to make up the difference.

He said that despite using some of the reserves, the district will still have $12.6 million — or 4 percent — in that account. The state requires districts to maintain a 3 percent reserve at all times.

After Tomyn took office in November, he created his own new staffing plan, merging several curriculum departments to form K-12 Academic Services.

After he created his wish-list staffing plan in April, he soon learned that funding would fall $29 million short of paying for it.

In May, Tomyn announced the layoff of 261 employees — including all 160 first-year teachers. Officials said that all but two of those first-year teachers have been offered full-time jobs. At least 90 accepted and have since been reinstated thanks to resignations and retirements. The district also did not fill some 250 vacant positions.

Theresa Boston-Ellis, the district’s executive director of business services, said the challenges moving forward will be financing and upgrading technology for computerized state testing, renovating aging buildings, repairing aging vehicles and maintaining the 3 percent fund balance.

Here’s how the millage rate breaks down:

The required local effort was set by the state at 5.066 mills for 2013-14, meaning the average property owner will pay $506.60 for every $100,000 in taxable property value.

Also, the state set the 2013-14 funding adjustment millage at 0.025 mills, which works out to $2.50 per $100,000 of property value, down from $3.90 last year.

The state also set the district’s discretionary millage at 0.748 mills, which works out to $74.80 per $100,000 of taxable property value, same as 2012-13. The board could reduce the millage by up to a quarter mill, but it would lose $4 million in state funds.

The final component of the overall rate is the local capital improvement millage, which is primarily used to pay off debt. It remained the same at 1.5 mills, or $150 per every $100,000 in taxable property value.

Contact Joe Callahan at 867-4113 or joe.callahan@starbanner.com. Follow him on Twitter @JoeOcalaNews.

<p>The Marion County School Board approved the school district's maximum millage rate for 2013-14 on Tuesday, paving the way for two budget workshops in August.</p><p>The overall millage was set at 7.339 mills, which means a homeowner will pay $733.90 for every $100,000 of taxable property value. That's $33.20 less than in 2012-13.</p><p>The significance of Tuesday night's brief public hearing was that the board set the maximum millage rate. The district can only lower the rate by up to a quarter-mill, which will likely not happen because the district would lose $4 million in state funds if it does.</p><p>The state sets the overall millage rates for the state's 67 school districts, which have little flexibility to adjust them.</p><p>The next step for the School Board is to hold budget workshops on Aug. 8 and Aug. 22. If needed, a third budget workshop has been scheduled for Sept. 5.</p><p>At those workshops, board members will pore over the budget and decide whether to recommend any more changes before a final vote at the regular Sept. 10 board meeting.</p><p>Superintendent of Schools George Tomyn said after the meeting that the budget will continue to fluctuate. In fact, two of Marion County's elementary schools — Evergreen and Sunrise — were among about 105 schools in the state that will be required to offer an extra hour of reading each school day in 2013-14.</p><p>Tomyn just received word about the state mandate that came because of both of the school's low reading scores. Tomyn said the early cost estimate will be at least $500,000 to add the extra instruction at the two schools.</p><p>“We just received word and we have not even sat down to start creating a plan,” said Tomyn, adding that the financial team will have to begin figuring out how to pay for those programs.</p><p>Tomyn presented his 2013-14 budget to the board last week, a budget 1.5 percent leaner than last year despite the rising cost of health insurance and utility rates. The district's $456.8 million overall budget is $6.9 million less than in 2012-13.</p><p>The district budgeted $312.6 million for its general revenue fund — $7 million more than in 2012-13 and $2.9 million more than school officials had estimated in May.</p><p>Though it may seem like good news that the district has $7 million more in operations than 2012-13, that's not the case. Last year, the district used $10 million in reserve funds to balance the budget. Because the district had depleted its reserves above the state-mandated requirement, the district has to make up the $10 million in 2013-14.</p><p>Tomyn spoke to the board on Tuesday, explaining that he plans to use about $3 million in reserves to make up the difference.</p><p>He said that despite using some of the reserves, the district will still have $12.6 million — or 4 percent — in that account. The state requires districts to maintain a 3 percent reserve at all times.</p><p>After Tomyn took office in November, he created his own new staffing plan, merging several curriculum departments to form K-12 Academic Services.</p><p>After he created his wish-list staffing plan in April, he soon learned that funding would fall $29 million short of paying for it.</p><p>In May, Tomyn announced the layoff of 261 employees — including all 160 first-year teachers. Officials said that all but two of those first-year teachers have been offered full-time jobs. At least 90 accepted and have since been reinstated thanks to resignations and retirements. The district also did not fill some 250 vacant positions.</p><p>Theresa Boston-Ellis, the district's executive director of business services, said the challenges moving forward will be financing and upgrading technology for computerized state testing, renovating aging buildings, repairing aging vehicles and maintaining the 3 percent fund balance.</p><p>Here's how the millage rate breaks down:</p><p>The required local effort was set by the state at 5.066 mills for 2013-14, meaning the average property owner will pay $506.60 for every $100,000 in taxable property value.</p><p>Also, the state set the 2013-14 funding adjustment millage at 0.025 mills, which works out to $2.50 per $100,000 of property value, down from $3.90 last year.</p><p>The state also set the district's discretionary millage at 0.748 mills, which works out to $74.80 per $100,000 of taxable property value, same as 2012-13. The board could reduce the millage by up to a quarter mill, but it would lose $4 million in state funds.</p><p>The final component of the overall rate is the local capital improvement millage, which is primarily used to pay off debt. It remained the same at 1.5 mills, or $150 per every $100,000 in taxable property value.</p><p><i>Contact Joe Callahan at 867-4113 or joe.callahan@starbanner.com. Follow him on Twitter @JoeOcalaNews.</i></p>